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35a32c5
(Get the code!)
Same problem here.
On boot the Screens and Graphics screen does not show nvidia as an option (even after reselecting the nVidia proprietary driver and rebooting -- or after installing the nVidia driver via EnvyNG).
The nv driver can be selected off the Screens and Graphics menu, however, clicking on Test always fails.
When I boot, X fails and I get the low resolution error dialog. When I click on the Continue button, I end up in the GNOME desktop at 800x600. The Hardware Drivers screen shows the nVidia driver has the Enabled box checked and the Status shows a green light and says "In use".
When I run the NVIDIA Settings application, it says "You do not appear to be using the NVIDIA X driver..."
The Xorg.0.log file shows loading the nVidia driver successfully:
(II) NVIDIA GLX Module 169.12 Thu Feb 14 18:34:02 PST 2008
(II) Loading extension GLX
The only error message in the log file is the following:
(EE) Failed to initialize GLX extension (Compatible NVIDIA X driver not found)
I hope this helps.